FACTOR AFFECTING SALE OF LIFE INSURANCE POLICIES IN KENYA A CASE OF SELECTED INSURANCE COMPANIES IN NYERI COUNTY

Abstract

The main objective of the study was to determine the factors affecting the sales of life insurance policies. The study interviewed sales managers, unit managers, and sales representatives of the three leading insurance companies in Nyeri town. This target group was chosen because it would offer vital and immediate information and easier to access. This study was undertaken from June to November 2017.A cross-sectional survey design was adopted in this research. The target population was 120 employees of the three insurance Companies out of which 30% representing 36 respondents was sampled out as a sample size. The study used simple random sampling design because the design allows and gives equal chances to all individuals in a population to be selected. A questionnaire was used as main data collection instrument. To assess the validity of the questionnaires, a pilot study was conducted at Britam, Sanlam and Jubilee Insurance companies where 10 questionnaires was used to test whether they are able to give the required information related to the problem under study. Data collected was analyzed using quantitative and qualitative methods then presented using various statistical tools such as tables, graphs, pie chart and in percentages. This study showed that, through public awareness, disposable income and clients’ attitude affect life insurance sale. As seen from the study, majority of the respondents indicated that the awareness and income of buyers and the attitude of employees in the insurance industry are the greatest effects on the uptake of life insurance. Again, a wellmanaged sales process helps in assuring high sales. For this reason, the study would urge players in the sector to undertake training for their staff in more significant way. At the same time, the companies must fund the sales process adequately if life insurance policy sales are to be increased